ASIC has revealed that four current CBA financial advisers are under investigation as part of their enforcement activity.
ASIC confirmed that the four unnamed financial advisers are under scrutiny for improprieties in the bank’s financial advice subsidiaries. A senior ASIC official appeared before the Senate Economics Legislation Committee in Canberra recently and was asked to provide an update on the total number of CBA-aligned financial advisers who have received banning orders or other punitive action.
ASIC commissioner Kathy Armour answered questions in response to a query from Senator John Williams that, “five financial advisers had been banned, with “three receiving EUs, and three removing themselves from the industry.” She also said that ASIC had also, “subsequently banned another adviser in relation to his conduct at a subsequent licensee, but he came to our attention because of misconduct in the CBA group so that came out of that and we are still looking at about four CBA advisers.”
Peter Kell, the Deputy chair ASIC also adding that, “there has therefore been a total of nine CBA advisers banned, with more to come”.
This scrutiny of the financial advisers follows a recent report that indicated the number of CBA customers concerned they have been given bad financial advice has extended to 22,000, with $560,000 compensation offered so far.
The report says there have now been 22,435 expressions of interest in a review after it was set up after it emerged many customers lost millions of dollars due to dubious practices by some financial advisers between 2003 and 2012. The financial amounts involved in the compensation offers to date totals $562,500, including $79,700 accepted and paid to customers and $483,000 not yet accepted or rejected.